From the following particulars, calculate: (a) P / V Ratio (b) Profit when sales are OMR. 40,000, and (c) New break-even point if selling price is reduced by 10% Fixed cost = OMR. 8,000 Break-even point = OMR. 20,000 Variable cost = OMR. 60 per unit

From the following particulars, calculate: (a) P / V Ratio (b) Profit when sales are OMR. 40,000, and (c) New break-even point if selling price is reduced by 10% Fixed cost = OMR. 8,000 Break-even point = OMR. 20,000 Variable cost = OMR. 60 per unit

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Exercise 3:

From the following particulars, calculate:

(a) P / V Ratio

(b) Profit when sales are OMR. 40,000, and

Fixed cost = OMR. 8,000

Break-even point = OMR. 20,000

Variable cost = OMR. 60 per unit

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